Economics
Inflation Hits Low Bar Draghi Set as Stimulus Debate Gets Closer
- Euro-area consumer prices increased annual 1.3% in July
- ECB to focus on strong growth ahead of taper talk in autumn
ECB's Draghi Says Substantial Accommodation Still Needed
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Mario Draghi kept expectations low for inflation this summer, and July’s number is proving him right.
Consumer-price growth in the euro area stayed at 1.3 percent -- enough to argue that deflation risks have disappeared, but too little to meet the European Central Bank president’s goal of just under 2 percent. While it confirms Draghi’s prediction that inflation would remain near June levels in the coming months, it also reinforces his assessment that, despite better economic growth, there isn’t yet a self-sustained upward trend.